Indian IT-BPO Industry: Building Future Ready Organizations

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Indian IT-BPO Industry Building Future Ready
Organizations

• Chennai, 28-29 July 2010

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Key Topics

• Past Decade Employment Facts and Impact
• HRs four levers to build Future Ready
  Organizations
• Sustained Investment in Training
• Opportunities for Career Growth
• Managing People Challenges effectively
• Ensuring Cost Competitiveness
• HR Best Practices and NASSCOM Initiatives

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6X increase in direct employment3X increase in
the share of organized private sector
6x
45 of total incremental urban employment in the
last decade
By 2020 - Direct employment of 10 million
Indirect employment of 20 million
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Employment opportunities for diverse sections
of the society
Employment beyond Urban areas

• 58 of the IT-BPO workforce is from tier 2/3
  cities
• 56 employees are chief bread earners

• Young demographics
• Changing aspirations of Indias youth
• Created high paying jobs
• Setting new standards of work environment

Bridging the gender divide

• 37 women employees in FY09 account for 45 of
  fresher intake
• 26 of the female employees are chief wage
  earners

Empowering the youth

• Industry average age 27 years

• By 2020
• 5 mn women employees
• 4 mn direct employees in tier 2/3 locations

Livelihood for Economically backward

• 5 of the IT-BPO workforce from economically
  backward sections

Employing the Differently abled

• 60 of companies provide employment to
  differently abled people

NASSCOM Evalueserve survey findings, 7500
participants pan India
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Leading transformation in Tier 1 cities
extending impact to Tier 2/3 locations
Tier 1
Tier 2/3

• Direct employment - 1.9 million
• Indirect employment - 7.3 million

• Direct employment - 1.7 lakh
• Direct dependents supported- 4X

• 1.7X growth in FY05-09 in engineering colleges
  and technical graduates
• Number of engineering colleges- 985
• Number of technical graduates - 508,000
• Skill Development trainings in tier 2/3 locations

• 2X growth in FY05-09 in engineering colleges
  and technical graduates
• 58 of the total engineering colleges
• 62 of the total intake of technical graduates

By 2020 4.1 mn incremental direct jobs in tier
1 locations 3.8 mn incremental direct jobs in
tier 2/3 locations
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Global and Diversified workforce
IT-BPO Exports revenue by Geography, FY2010
(nos) 2007 2008 2009
Countries of Operations 48 52 60
Operating Centers 340 400 460
Finland Germany Hungary Netherlands Romania Swede
n
Poland
Russia
Canada
UK Ireland
France
USA
Spain
Italy
China
Japan
Morocco
Egypt
S. Arabia
Taiwan
India
Mexico
Guatemala
Philippines
Sri Lanka
Tanzania
Brazil
Australia
Argentina
South Africa
New Zealand
2.2 million employees60 countries 35
Languages 5 Foreign nationals
Illustrative list of countries represented above
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NASSCOM Top 20 IT-BPO Employers in India FY2010
Rank Company
1. Tata Consultancy Services
2. Infosys Technologies Ltd
3. Wipro Ltd
4. Cognizant Technology Solutions India Pvt Ltd
5. HCL Technologies Ltd
6. Genpact Limited
7. MphasiS Ltd
8. Intelenet Global Services Ltd
9. Tech Mahindra Ltd
10. Aegis Ltd
Rank Company
11. Capgemini Consulting India Pvt Ltd.
12. WNS Global Services (P) Ltd
13. Firstsource Solutions Ltd
14. CSC India Pvt Ltd
15. 3i Infotech Ltd
16. Hinduja Global Solutions Ltd
17. LT Infotech
18. Patni Computer Systems Ltd
19. Exl Service.com (India) Pvt Ltd
20. Aditya Birla Minacs Worldwide Ltd

• Note
• indicate pure-play BPO firms
• This list is based on the India-based FTE
  headcount of firms with IT-BPO operations in
  India, as reported to NASSCOM in its annual
  survey
• Based on publicly available information, few
  other MNC's such as Accenture, Convergys, HP
  India and IBM would have also featured in this
  list. However, as they have not participated in
  the survey, we do not have all the required
  details and are unable to rank them.
• Most companies on this list are engaged in IT as
  well as BPO

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Industry in the process of building high energy
workforce focused on future aspirations
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Key Topics

• Past Decade Employment Facts and Impact
• HRs four levers to build Future Ready
  Organizations
• Sustained Investment in Training
• Opportunities for Career Growth
• Managing People Challenges effectively
• Ensuring Cost Competitiveness
• HR Best Practices and NASSCOM Initiatives

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Sustained investment in training
BPO
IT Services
Analytics FA HR Insurance
College Post College Pre College
College Post College Pre College
Within college and outside - Engineering, RIM,
Testing, etc
Efficiency Certification
Efficiency Certification
Investing in training through structured
training programs affiliation with academia
In-house universities
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Industry supplementing the Education system
Other costs include training for existing
employees, employee welfare, salaries for
training staff, training material costs
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Emerging as a Skill Factory
Introducing/upgrading new skills
Industry Ready
Future Ready
IT Services
BPO
ERD

• Domain skills BFSI, Consulting (IFRS), Retail,
  Healthcare, Telecom, etc.
• Customer facing skills Client interaction, sales
  marketing, customer service, voice/accent
  training, etc

• Domain skills across sectors BFSI, Healthcare,
  Retail, Telecom, etc.
• Cross-platform skills SAP, Oracle, Java
• Technical skills Mainframe, Dot net, J2EE, Open
  Systems, etc

• Domain skills across sectors Aerospace,
  Automobiles, Energy, Telecom, etc
• Services Plant engineering, Sustainability/Green,
  Energy, Infrastructure engineering, etc

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Infosys Technical University Developing
technical and project management talent

• CASE BACKGROUND
• Infosys Education and Research (ER) department
  facilitates company growth through knowledge
  acquisition, dissemination and management.
  Research, technical and project management
  related education programs are conducted for both
  in-house and strategic customers of Infosys.
• PROGRAMS
• Foundation Program Comprising generic training
  and stream specific training (like J2EE, Open
  Systems, Dot net, Mainframe) over 50 to 90 days
  for engineers selected from campuses
• Long Cycle Program For freshers with Non-IT
  background
• Fast Track program For freshers with IT
  background
• Non-Engineering graduates
• 2) Just-In-Time Training Courses delivered to
  employees based on sudden/unforeseen requirements
• Project Management CoE Focused to establish
  high standard in Project Management through
  competency development, experiential knowledge
  sharing and analysis of project excellence
• Campus Connect Partnership with over 470
  colleges for providing training in technical and
  soft skills also work with policy making bodies
  such as AICTE to include industry centric
  electives
• Higher Education Scheme Continuing education
  through distance learning programs or
  certification with reputed institutions
• Inter-Connect Align learning programs to
  realize client requirements , promote competency
  development through collaboration and involvement
  of practitioners
• E-Learning Programs TAL (Technology assisted
  learning) enables individuals to do a self-study
  of a course on their own, assisted by exercises
  at beginning and end of each topic. CBTs
  (Computer based tutorials) are training courses
  that can run on the PC or be accessed via web

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EXL Insurance Academy - Creating Insurance
Specialists
INDUSTRY SPECIFIC TRAINING
IMPACT
EXLs Insurance Academy A team of 26
professionals that includes in-house faculty,
guest faculty and content developers. These
resources are proficient in insurance subjects
and have been drawn from the insurance industry
in India, the U.S. and the U.K.
600 certified to date
ACADEMY OFFERINGS Certification programs Three
levels of certification programs (e.g., beginner,
intermediary and advanced) through education
partners in the U.S. and the U.K. Specialized
trainings Programs such as Workers
Compensation, Premium Audit, Dental Insurance,
Medical Expense, Medical Billing, Claims
Underwriting, Auto and Home Insurance, Commercial
Insurance, Reinsurance, Reinsurance Accounting,
etc. Content designing, development, and
new-hire training Designing client training
programs, 40 hours of mandatory training for new
hires
2,300 employees covered
12,000 professionals trained across EXL
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Key Topics

• Past Decade Employment Facts and Impact
• HRs four levers to build Future Ready
  Organizations
• Sustained Investment in Training
• Opportunities for Career Growth
• Managing People Challenges effectively
• Ensuring Cost Competitiveness
• HR Best Practices and NASSCOM Initiatives

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Industry investing in vibrant career growth
retooling employee skill sets

• Cross cultural integration and Best practice
  sharing
• Joint training programs
• Cross polarization of project teams
• Global compliance group for global integration

GLOBAL EXPOSURE

• Career Architecture maps
• Internal job rotations
• Continuous improvement projects
• Best practice sharing

DEFINED CAREER PATH
BUILDING LEADERSHIP POOLS
MULTI SKILLING

• Competency Frameworks
• Expertise across end to end industry value
  chains through job rotations
• Funding/reimbursement of further education
  certification programs
• Cross skilling/multi-skilling/up-skilling across
  technology / platforms / services

• Strong domain leadership programs to understand
  core business functions
• Ops, Finance, IT, HR, Commercial Leadership
• Rigorous career and succession planning process
• Global Leadership Cadre program shadow boarding
  accelerated career path program

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Genpacts Career Development Framework Moving
up the value chain
Multiple Career Paths based on Skills, Knowledge
Job Interest
Business Leader
AVP SME Manager SME
Ops Leader Manager Ops
Build Knowledge Leaders
Build Operating Leaders
Assistant Mgr Subject Mkt Expert
Assistant Mgr FA OPs
Accounting Mgmt Trainee
Domain Expert Trainee
Process Developers
Skill Level 1 Skill Level 3
Skill Level 2 Skill Level 4
Process Associates

• Training Development Initiatives to Support the
  Career Path
• License to Operate
• Training Roadmap for each Employee
• Business Rotations On-the-job experience
• FA Domain Certifications - CFA, GAAP

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Case Example LT Infotechs Career Development
Framework
Career Development Framework has Seven career
tracks with detailed job descriptions
Employees design their development plans based on
individual aspirations opportunities available
Career Counselors Mobility Inter/intra tracks
Competency development
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MphasiS Aarambh Program Building leadership
from within

• CASE BACKGROUND - MphasiS started an employee
  leadership capability building program- AARAMBH
  in 2008. Aimed at identifying high potential
  employees at the entry level and the junior cadre
  across the enterprise and grooming them for
  leadership at the middle management level. The
  program is tailored to support the various
  business units and functions that exist in
  MphasiS by coupling a strong framework with
  unique business constraints and requirements.
• For example, in HR, identified individuals spend
  5 months each working in 3 different HR functions
  from manning the help desk, to background
  verification and HR line both learning and
  delivering on the day to day tasks.. In the last
  3 months, the employee is aligned to a function
  outside HR to get an outside-in perspective so
  that they can come back and be a better partner
  to the business.
• This is supported by a strong learning
  deliverable as well, where each employee must
  complete mandatory learning courses, conduct
  knowledge sharing sessions and much more.
• BENEFITS
• The company has retained 100 per cent of the
  employees who graduated from this program
• Employees had transformed into generalists with a
  strong functional foundation
• Productivity of the employees increased
  substantially
• One of the graduates program managed the mid-year
  enterprise performance management, process,
  another helped build the enterprise potential
  program and yet another drove the migration of
  the enterprise personnel MIS from one platform to
  another

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Key Topics

• Past Decade Employment Facts and Impact
• HRs four levers to build Future Ready
  Organizations
• Sustained Investment in Training
• Opportunities for Career Growth
• Managing People Challenges effectively
• Ensuring Cost Competitiveness
• HR Best Practices and NASSCOM Initiatives

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Industry taking significant measures to manage
challenges effectively
High Attrition levels

• Monetary benefits Retention bonus, rewarding
  meritocracy, ESOPs
• Non-monetary benefits Continuous skill
  development innovation culture accelerated
  growth track, job rotation

Employee retention
Attracting right talent
Leadership pipeline trained middle management
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Employee Engagement culture that permeates
through the organization
Rewards Recognition
Communication
Interaction
CSR

• Awards to recognise, acknowledge, appreciate and
  reward employees achievement / exemplary
  Performance

• Company newsletters
• Social media
• Internal blogs

• Cross-functional groups for projects
• Group activities sports / arts / music
• Leadership interaction

• Education, Green IT, health, rural development,
  upliftment of women and children, etc

Mahindra Satyam Lets Talk Leadership HR
connect sessions with offshore and onsite
emps CEO Blog Communicates with employees also
seeks ideas / views and opinions on various
topics Q Zone Employees can raise a concern or
provide constructive suggestions on key processes
Steria Individuals Pat on the Back Award, Star
Performer Award, Long Service Award, Star of the
Month Award, Instant Recognition and Special
Awards, etc    Teams Star Team Award and Team
Award
Mahindra Satyam Game Changers To identify key
Associates to lead transformation
journey Leadership Location Councils
Empowerment and distributed leadership for
decentralized and quicker decision
making Rainmakers Sales Associates get-together
to share notes on business , market development,
etc
IBM Daksh E.X.I.T.E. camps For girl students to
take up science as a career , thus enhancing the
resource pool S.T.E.M. camps To encourage
children with special needs to take up science
technology as a career. They go through a 5-day
camp and year-long mentoring by employees
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Mahindra Satyam Using Innovation as a retention
tool
Strategize Seeing Opportunity
Transform Investments in Innovation
Realize Innovation Rollout

• Innovation for Excellence Award Organization
  wide Innovation contest to generate novel ideas
  Senior leaders act as Mentors
• Investment Council Forum which evaluates and
  invests in new ideas
• Shadow Board Encourages young leaders to give
  innovative ideas by involving them in strategic
  planning
• Recommends specific proposal to CEO and COO
• Oversees and monitors progress on approved
  investments

• Futurus for co invention with customers
• BI innovation lab with the Economic Development
  Board Singapore
• Competency CoEs created with Alliance partners
  for various horizontals (SAP, Oracle, BI, CPM,
  IES) and Verticals (Aero, BFSI, Mfg)
• Mobility labs in collaboration with CanvasM
• Engineering Validation Lab
• Customer specific innovation lab

• iDecisionsTM BI Framework which was enhanced
  based on a Grant by Govt of Singapore, based on
  license sale of analytical applications
• Engineering Lab Design and prototype development
  of beverage dispenser for an FB major
• Oracle Delivery Express "Delivery XPress" offers
  its ERP customers a rapid execution tool with
  accelerators to support different service
  offerings
• World Cup 2010 Built the first web based,
  integrated, scalable, reusable Event Management
  System for FIFA designed and built the Team
  Services product being used for a first time at
  the World Cup

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Key Topics

• Past Decade Employment Facts and Impact
• HRs four levers to build Future Ready
  Organizations
• Sustained Investment in Training
• Opportunities for Career Growth
• Managing People Challenges effectively
• Ensuring Cost Competitiveness
• HR Best Practices and NASSCOM Initiatives

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HR pivotal in maintaining Industrys cost
competitiveness
Annual Incremental engineering fresher addition,
000, FY01-09

• Hiring Fresher's
• Average Fresher to lateral ratio 7030
• Just-in-time hiring
• Build vs Buy
• Hiring from Tier 2/3 cities
• Alternative talent pools increasing ratio of
  non-engineers

• Cumulative fresher addition (FY01-09)
• IT- 684,000

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Improving access to potential hires Targeting
tier 2/3 cities
As part of its hiring strategy, Genpact has been
sourcing talent from tier-2 and tier-3 locations
through its Storefronts
Genpacts Storefronts

• Spread across 20 cities including
• Bhubaneshwar
• Chandigarh
• Cochin
• Indore
• Jamshedpur
• Lucknow

Candidates walk in directly for
interviews Candidates found fit are hired on the
spot Candidates also gain information about
Genpacts business
Contributes 20 of hires
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Honeywell Technologies Leveraging Madurai for
Engineering talent
Honeywell campus, Madurai

• 20 engineering colleges in and around Madurai
• Strategically located in Tamil Nadu in close
  proximity to many engineering colleges

• Honeywell has set up a development centre in
  Madurai due to availability of a large engineer
  base. It provides development work for various
  projects in aerospace and automation and control
  solutions.
• It also imparts training to engineering
  professionals in the core areas and technologies
  that are in use in Honeywell products and
  businesses.
• HTSL Madurai has established relations with
  regional engineering colleges so as to have a
  pipeline of competent engineering professionals

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Key Topics

• Past Decade Employment Facts and Impact
• HRs four levers to build Future Ready
  Organizations
• Sustained Investment in Training
• Opportunities for Career Growth
• Managing People Challenges effectively
• Ensuring Cost Competitiveness
• HR Best Practices and NASSCOM Initiatives

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Industry Best Practices

• Insist on Relieving Letters
• Ethical Hiring
• Campus Hiring in 8th semester
• Support reference checks and mandate background
  checks
• Check on non-compete agreements from customer
  contracts
• Service Notice Period with previous employer
• Discourage frequent job-hoppers (less than 6
  months)
• Partnership with Executive Recruiters Association
  to follow similar practices.

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NASSOM initiatives broad based and aligned to
Industry aspirations
Short Term (0-12 months) Medium Term (12-24 months) Long Term (24 months onwards)
Finishing Schools Focus on soft skills and domain competencies and certifications and assessments NAC, NAC-Tech Finishing Schools, Establishing New IIIT - Phase I Vocational Skill Development NAC, NAC-Tech Establishing New IIIT-Phase II Scaling up PhD program Vocational Skill Development NAC, NAC-Tech
Industry-Academia Faculty mentorship programs (CSR) National Faculty Development Program Industry-Academia Faculty mentorship programs (CSR) National Faculty Development Program
Education Web of Collaboration Research Study Participation in Key Government policy Initiatives (NKC) (NSDM) etc Events (Forums, IT Seminars, Summits) Education Web of Collaboration Participation in Key Government policy Initiatives Education Web of Collaboration Participation in Key Government policy Initiatives
STUDENTS
FACULTY
OTHERS
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Thank You